In the 21st century, we have witnessed a major technological revolution in every field, whether it’s science, education, or business. Among the changes is the introduction of e-commerce, and how it influenced the market to transform into the realm of the online market. In the e-commerce era, we have also come across a similar word coined “ghost commerce.” So, in this article, we will discuss what is ghost e-commerce and its aspects in businesses and markets.
What is Ghost Ecommerce?
Ghosts are usually referred to as phantasm or a spirit which can be felt; however, they do not exist or don’t have an abstract presence. Similarly, the term Ghost E-commerce represents a type of goods-selling and service business, which has an online presence; however, no physical storefront. In this context, the term ‘ghost’ means that such an e-commerce business has a strong online existence. Nevertheless, they don’t own any abstract stores.
For Instance, Uber, the Francisco-Headquartered transport service, provides cabs under the name of “Uber Cabs.” However, they don’t own any car or a vehicle.
How Does Ghost E-Commerce Work?
If you’ve already been influenced by the new digitised form of representing your business, you must have been thinking about giving it a try. Don’t worry, as we have made it easy to how ghost commerce works,
Online Store Set-up:
The process primarily includes setting up their business with online shopping platforms like Shopify, Flipkart, Woocommerce, or Magento.
Supplier Selection:
Following the set-up, you need to select a third-party supplier or manufacturer who offers shipping services. Meanwhile, this supplier stocks the products and handles the inventory.
Product Listing:
After collaborating with a supplier, the entrepreneur lists the products they want to sell and shares them with the same.
Customer Order:
After the customer visits the online store and places an order, the entrepreneur’s website captures the buyer’s details, including the customer’s shipping address and payment information.
Order Forwarding:
After that, the business owner sends the customer details and needs to the supplier. Meanwhile, this is done with an integration of the online store and the supplier system.
Supplier Fulfilment:
Soon after receiving the order, the supplier picks, packs, and ships the product directly to the customer on behalf of the supplier. Hence, this process also includes generating shipping labels.
Delivery:
Moving on, the customer receives the package while they assume they received it from the shipping store. While the packaging of the item may or may not include the credentials of the supplier
Payment Handling:
The entrepreneur collects the retail price of the product. While they pay the supplier the wholesale product while keeping the profit margin as revenue.
How to Start Ghost Commerce?
While starting a ghost commerce, make sure that you’ve already sorted out the online setup. Along with it, keep in mind with the following steps,
Market Niche
After deciding to pursue Ghost e-commerce, make sure you pursue detailed research about the market including effortless content.
Choose a Platform
Following research, make sure you choose an appropriate online shopping platform for your business.
Build a Website
After you have already decided on your target audience and platform, the next step would be building an e-commerce website.
Launch the website
When you’re done with launching your website, it’s crucial to have website visitors who click on the products, visit the company’s website, and make a purchase.
Monitor and Optimise
When you’re all done with setting up your website, rely on regular monitoring and optimisation.
Factors To Consider
Meanwhile, along with a running website and an established entrepreneurship, keep in mind about these points,
- Transparency
- Authenticity
- Brand Alignment
- Legal Compliance
Conclusion
Hence, just how easy and attractive ghost e-commerce looks, it needs significant thought and preparation. Along with it, prioritising authenticity, transparency, and alignment is as necessary as other steps. Whether you want to expand into a new niche or start a ghost e-commerce business, make sure that you trust your suppliers and keep your customers happy while making your business trustable. Additionally, in such an e-commerce venture, it is necessary to plan your digital marketing activity and set aside a budget that will include your website in the long run.
